Always consider hidden risks
SP500 Consumer Discretionary (XLY): Resistance Zone?
March  1 2016 ( From Stockcharts, TradingView  )
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The Situation

​The Consumer Discretionary Sector  includes industries such as automobiles
​and ​components, consumer durables, apparel, hotels, restaurants, leisure,
​media, and retailing.

It remains as the name says it, discretionary spending for the consumer.
When we observe that sector start to underperform at the beginning of the year,
​we can ask ourselves is the whole market can keep up without taking into account
​the US Consumer which makes 70% of the whole economy.​​​

​​The Consumer Discretionary Sector ETF ( XLY ) is within a steep
​Rising Channel that ​started on February 11 and already testing
thhe resistance trendline that started back since December 2 2015.​
( See first chart below - Upward Channel - Red Trendline - Ellipse ).

​​​The Consumer Discretionary Sector ETF ( XLY ) started to ​outperform compare to the ​Mighty SP500 Index ( SPY ETF ) since February 10 2016 and near its resistance trendline also.
( See second chart below - Ellipse )...
But the real interesting part is that the Consumer Discretionary Sector ETF ( XLY ) is testing the resistance trendlines when Bullish convictions are relatively the strongest according to the Bullish Percentage of the SP500 Consumer Discretionary Index (DISC) compare to the SP500 Bullish Percentage Index ​​ratio, one of the highest reading of the past 5 years. ​( See third chart below - Thick Black Trendline )...


SP500 Consumer Discretionary (XLY): Resistance Zone? $SPY, $XLY #xly #investing #sp500 #spy

SP500 Consumer Discretionary ETF XLY 
​Daily Candles​
20 DMA ( Yellow Line )​
50 DMA ( Red Line )​​

Consumer Discretionary ​ Sector ETF XLY
over SP500 Index - SPY ETF ( Candles )
20 DMA ( Yellow Line )​

​SP500 Consumer Discretionary Bullish % Index ( Dots )
SP500 Index​ Bullish % Index
7 DMA ( Blue Line )

Chart Source: